Airdrop Alert – What is a Crypto Currency Airdrop?

Airdrop Alert – What is a Crypto Currency Airdrop?

Airdrop Alert – What is a Crypto Currency Airdrop?

Airdrops:

The term “airdrop” might evoke an image of food and other supplies floating through the sky for the starving population. You will be surprised to learn that in crypto-currency, this term has a different meaning. Airdrop alert is the main website that we will touch base on this article.

In crypto-currency, an airdrop is a term used to refer “free distribution of coins/tokens.” This idea isn’t new, but it is innovative indeed. You can find it common in startup businesses. These coins are often given to potential users to run a business and build a strong community. These airdrops are also considered as an attempt to encourage networking. However, there are always questions regarding potential tax implications and the legality of the coins that people got for free.

Initial Coin Offerings:

This free distribution takes place only after the completion of ICO of a blockchain project. ICO is nothing but Initial Coin Offerings which is similar to IPO in the traditional stock market. These coins become tradable on an open market after the initiation of an ICO. Moreover, the potential recipient of these airdrops is required to own relevant block-chain coins. For instance, if a company’s airdrop is based on Ethereum, you should have ETH. Similarly, if the airdrop is based on Ripple or Bitcoin, you need some XRP or BTC to get the airdrop.

Off late there are companies that provide airdrop of their coins to the participants that help them in promoting their new coin and their ICO on social media. In those airdrop events you do not need to hold any crypto currencies like ETH or BTC. In order to weed out people taking advantage of such airdrops by creating multiple accounts, they might ask you for a minimum holding of some crypto currencies like ETH. Say for example you might need some 0.02 ETH in your ERC20 wallet (myetherwallet – MEW) to receive their airdrop.

How is Airdrops conducted?

The format involved in the free coins giveaway is simple and user-friendly, which is as follows: the project takes a “snapshot” of the blockchain and Bitcoin or Ether holders receive free coins after it. The same process is applied to various blockchains, but Bitcoin and Ethereum are frequently used for this format.

It is worth mentioning here that you should keep these coins safe and under your control. For example, experts suggest, these coins shouldn’t be on an exchange unless you have plans to use them for trading purposes.

Furthermore, there are possibilities that coins are given to users with an overlap and those that are experiencing a loss. Some projects might encourage other projects to distribute free coins to the owners for some benefit in return. Therefore, if you are a potential investor that has maintained a diverse profile of coins, you have more chance to receive airdrops as the concept is becoming highly popular day by day.

Beware of Scams:

Apart from this, in the crypto world, there are plenty of scam airdrops that aim to steal your tokens. Therefore, avoid giving wallet file or private keys to others. Also, don’t click on suspicious links as clicking on a malicious link may provide scammers with all your private information.

Where to find Legitimate Airdrop alert?

After learning about airdrops, it is but natural to think whether or not it is truly safe. However, for more information on the reliability and safety of airdrops, visit airdropalert.com. Concerning the fastest growing trend of airdrops, airdropalert.com is built to collect all the important information about active and forthcoming airdrops. It is safe and user-friendly with plenty of accurate information regarding airdrops. The team is working tirelessly to make this community more beneficial for everyone. If you are new to the crypto world, be a part of airdropalert.com now for free. Check out their twitter page here!